House approves revision of federal crop insurance law

The Agricultural Risk Protection Act of 1999 makes across-the-board cuts in farmer-paid premiums and is designed to provide affordable insurance that protects producers against price and production volatility, increase producers' insurable yields and initiate new risk management for livestock producers.

The Agricultural Risk Protection Act of 1999 was crafted to strengthen the farm safety net by making crop insurance more accessible to growers of all crops.

House Agriculture Committee Chairman Larry Combest, R-Lubbock, said the major reform effort reduces the need for producer dependence on Congress to cobble together improvised and costly disaster assistance packages.

''This is Phase One of Congress' commitment to provide our nation's farmers with the strong safety net they need,'' said Combest. ''Producers already struggle more than enough to meet the uncertainties of markets and weather, but it is too much to ask that they struggle year after year without the means to manage their risk through an effective crop insurance program. Making federal crop insurance affordable and effective is sound policy.''

The changes in crop insurance contained in HR 2559 ''allow us time to review and develop a comprehensive look at our long-term farm policy,'' said Charles Stenholm, D-Stamford, ranking minority member of the committee.

Features of the Agricultural Risk Protection Act of 1999 include:

Strengthening the farm safety net by making crop insurance more accessible to growers, reducing the need for unbudgeted ad hoc disaster assistance.

Helping farmers protect against declining prices and farm income by making more affordable insurance coverage that protects farmers not only against crop losses, but declining prices as well.

Making revenue insurance, including Adjusted Gross Revenue Crop Revenue Coverage, and other policies developed, such as cost of production insurance, more affordable so farmers can better protect their bottom line.

Offering assistance for the first time to livestock ranchers seeking risk management tools to combat the adverse financial impact of volatile weather and markets.

Helping farmers protect more of what they grow by limiting any reduction in insurable yields due to crop losses from a natural disaster. (Under this bill, 60 percent of the county's average yield would be the lowest yield assigned to a farmer for a crop year when actual production history is calculated to arrive at insurable yields.

Instead of settling for coverage that insures 50 percent of yield and 55 percent of the crop's market value, farmers will be offered area yield insurance that carries a higher combination of yield and price protection.